Assessing And Managing Risk On IKEA

Keep in mind that increasing value for the firm does not necessarily  mean expanding the business. Acquiring other firms, conducting research  and development, or introducing new products and services might fall  under the umbrella of value enhancement, while in other cases it may  mean downsizing, rightsizing, or even refining the products and services  the firm offers.

In a paper of approximately 1,500 words, revisit  the strategic alternatives and financial analysis recommendations that  offer the greatest opportunities to add value to your firm and assess  the risks of each. Use the information you have learned about your  company’s business model, industry, competition, and target market in  conjunction with the feedback you received on your work in the previous  two topics to assist you in addressing the following.

  1. In the  Strategic Alternatives Assessment, you evaluated potential growth  opportunities and strategies for your firm, using a SWOT analysis to  assess the advantages and disadvantages of each. Recapitulate your  findings here in conjunction with any instructor feedback received,  identifying how you determined your proposed strategic alternative(s)  and calculated potential inhibitors to each. Expand upon your initial  proposed alternatives to include financial considerations.
  2. Throughout  the course, you have developed and submitted reports for your firm  based on information that you and your CLC group have acquired and  assessed. However, it is equally important to consider what other  information, had you been able to locate it, would have been of value in  formulating recommendations. What information are you lacking that  might assist you and your team in developing and suggesting  value-enhancing strategic alternatives? What information are you lacking  that would assist you and your team in better assessing and managing  possible risks of the proposed alternatives?
  3. When it comes to  making strategic recommendations to management, financial considerations  weigh significantly on the feasibility and viability of the available  options. Revisit the Financial Analysis assignment and, with the  incorporation of any instructor feedback received, reiterate your  findings on the financial condition and performance of the firm  respective to the risks and benefits of forming a strategic alliance,  profitability ratios, and possible value-enhancing strategies.
  4. Given  your instructor’s feedback and considering how the financial markets  have changed since you submitted your Financial Analysis assignment, how  would you refine or update your assessment of the organization’s  current performance and financial strategies?
  5. How would you use a  decision matrix to determine the risks of your suggested strategic  alternative and the potential financial implications for your company of  pursuing this alternative? Is the decision matrix an effective tool for  predicting risk? Why or why not? How does the application of the  decision matrix alter what you previously chose as the most advantageous  strategy?
  6. Utilizing a risk matrix, identify a minimum of 10  unique risks associated with the strategic alternative you believe will  provide the most significant opportunity for your firm to add value.  Choose two or three of the most critical risks and discuss their  potential impacts on your selected alternative.

Submit your risk matrix with your written response.